Refinance

Get Your Hands on Some CashAnother way to make a refinance work for you is to refinance for more than the balance remaining on your old mortgage -- in effect, tapping your home equity, or "cashing out," in mortgage speak.

Trade Your ARM for a Fixed RateBy switching to a fixed rate loan, you will not only reduce your payment, you will also likely lock in an attractive rate for as long as you own your home.

Mortgage Refinance CostsWhen you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. With a new loan, you again pay most of the same costs you paid to get your original mortgage.

Analyze Your SavingsCheck the market closely to determine the available rates and the costs associated with refinancing. These costs can include items such as an appraisal and other various fees and points.

Your Personal Income TaxesWith a lower interest rate on your home loan, you will have less interest to deduct on your income tax return. That, of course, may increase your tax payments and decrease the total savings you might obtain from a new, lower interest mortgage.

Consider Other Mortgage ProgramsIf you are thinking about refinancing your mortgage, you might want to consider other types of mortgages. For example, you might want to look into a 15-year fixed rate mortgage.

Deciding to RefinanceTraditionally, the decision on whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing.